Core Insights - Scholastic reported disappointing financial results for its fiscal first quarter of 2026, missing both revenue and earnings expectations [1][4] - The company's shares fell nearly 12% following the earnings report, contrasting with a slight increase in the S&P 500 index [1] Financial Performance - Revenue for the quarter was $225.6 million, a decline of nearly 12% year-over-year [2] - The operating loss was $81.9 million ($2.52 per share), an improvement from the previous year's loss of $85.6 million [2] - Both revenue and loss figures were below analyst consensus estimates, which projected revenue over $240 million and a narrower loss of $2.45 per share [4] Impact of External Factors - Scholastic attributed its performance issues to "funding uncertainties" affecting public schools, which are key customers [5] - The education solutions unit experienced a significant revenue drop of 28%, totaling slightly over $40 million [5] Future Outlook - Despite the recent challenges, Scholastic reaffirmed its guidance for the current fiscal year, expecting non-GAAP EBITDA to be between $160 million and $170 million [6] - The company anticipates revenue growth of 2% to 4% compared to the previous fiscal year [6]